What Investors Want From a Data Room

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A data room is an online platform that is secure and facilitates the exchange of sensitive data during due diligence. Data rooms are perfect for any high-risk business activity such as preparing for an M&A deal or closing an investment helping to facilitate another high-risk transaction. Users can easily access and share documents while ensuring the security of the files.

Investors should review important corporate documents during the due diligence phase. This includes reviews of contracts and shareholder agreements, among others. If the information is shared via shared drives or email it can be time-consuming and difficult. A virtual data room allows departments of law and other stakeholders to work together securely on important documents.

As a founder, it’s essential to understand what investors want from your data room to be able to be able to deliver efficiently and quickly. There are a few key elements you can put in your data room that will help you stand out.

1. Team Information

Investors frequently request a list with the current team members’ names and job titles. If you can provide this in a brief section this will make the process much faster.

2. Competitive Analysis

Investors will also be interested in knowing about your competitor’s strengths and weaknesses. It will demonstrate your research and speed up the process if you include a competitive analysis of your most successful competitors.